President Obama released his $4.23 trillion budget proposal for fiscal year (FY) 2017 this week.

Of note to skilled nursing care centers are these key proposals:

• Bundled payment for post-acute care beginning in 2021
• Reduction of market basket payments to SNFs and other providers
• Implementation of a budget-neutral value-based purchasing program beginning in 2018
• Further proposed reductions in bad debt reimbursement
• Adjustment of the standard for classifying a facility as an Inpatient Rehabilitation Facility
• Medicare Advantage “reform goals”
• Expansion of a variety of Medicaid-financed home and community-based program authorities​

In addition, AHCA/NCAL issued a statement from Mike Cheek, Senior Vice President, Finance Policy and Legal Affairs noting the association’s concerns that the bundled payment proposal amounts to a rate cut of nearly three percent for providers and is not a meaningful reform.

AHCA/NCAL explains, that the President’s budget is a proposal or request to Congress and is the start of the federal budgeting process. The President’s budget submission is referred to the House and Senate Budget Committees and to the Congressional Budgeting Office (CBO) where proposals may or may not be advanced by the Congress.

AHCA has prepared a summary that provides an overview of key U.S. Department of Health and Human Services proposals of interest to AHCA/NCAL membership. AHCA/NCAL will be heavily engaged as these proposals are considered by the Congress or possibly advanced by Executive Order.